Victoria's Secret owner to rally by 21%, Goldman says

Investors should buy shares of L Brands on the prospect of better profits after recent marketing and restructuring changes, according to Goldman Sachs, which raised its rating on the specialty retailer to buy from neutral.

L Brands is the owner of Victoria's Secret and Bath & Body Works. It decided to reduce the level of promotions starting last April. The firm's shares are down 19 percent this year.

"2Q results have eased our concerns about how disruptive the new promotional strategy at Victoria's Secret (VS) would be on the business, and we believe a bottom is visible for productivity and margins," analyst Lindsay Mann wrote in a note to clients Monday.